International

Indonesia to issue dual-currency bonds worth US$3.1 billion

VNA
The Indonesian government plans to release dual-currency bonds with a total amount of US$3.1 billion for deficit financing this year, said the Ministry of Finance.

Bank of Indonesia (Source: Getty)

Bank of Indonesia (Source: Getty)

The notes will be listed at the Singapore Stock Exchange and the Frankfurt Stock Exchange.
Bonds in the US dollar denominated have two series, RI0230 worth of US$1.2 billion with a tenure of 10 years and RI0250 with a value of $800 million and have 30-years tenure. In addition, the ministry also released Eurobond with RIEUR0227 series worth of EUR1 billion ($1.1 billion) with a tenure of seven years.
The bonds received a Baa2 rating from Moody’s, BBB from Standard & Poor’s, and BBB from Fitch.
Joint Book-runners in this transaction are Citigroup, Deutsche Bank, Goldman Sachs, PT Mandiri Sekuritas, and Societe Generale. Acting as co-Managers are PT Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
Last year, Indonesian has sold the government bonds with total amount $750 million in RI0929 series and 750 million EUR in RIEUR0926 series. This is Indonesia’ third dual-currency bonds following 2017 and 2018.
In the 2020 State Budget, the government set the deficit target 307.2 trillion Rp or 1.76 of the country’s gross domestic product (GDP). The state revenues are set around 2,223 trillion Rp ($158.78 billion) and expenditure 2,540.4 trillion Rp.

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